EV startup Faraday Future paid $7.5M to company tied to founder Jia Yueting

Faraday Future, the beleaguered electric vehicle startup, has disclosed a substantial payment of approximately $7.5 million to a company linked to its founder, Jia Yueting, as per a recent regulatory filing. This transaction occurred in 2025, a year marked by the company's delivery of just four vehicles and a staggering loss nearing $400 million. In a strategic shift, Faraday Future has begun focusing on the sales of more affordable vans and robots sourced from China. This financial activity unfolded while the company remained under the spotlight of an investigation by the Securities and Exchange Commission (SEC). The SEC's inquiry centered on potential "related party transactions" involving Jia and other entities he controls, as highlighted in Faraday Future's own disclosures. The SEC was also examining whether the company accurately portrayed Jia's level of control during its public offering in 2021, as well as investigating claims regarding early EV sales in 2023. Notably, the SEC concluded its four-year investigation in March, despite having previously indicated to Faraday Future and its executives that enforcement actions were being recommended. The details of the payments were revealed in Faraday Future's annual proxy filing. The breakdown included monthly consulting fees of $100,000, a $2 million bonus, and $1.7 million to repay loans to FF Global Partners LLC, the company controlled by Jia. However, the filing did not clarify the remaining $2.6 million. Faraday Future has categorized FF Global as an "affiliate" of Jia, stating he wields "significant influence" over the entity, which has five voting managers, including Jia and his nephew, Jerry Wang. Wang serves as president of Faraday Future and reportedly receives a six-figure salary from FF Global, alongside his wife, who heads the legal department of the same company. Additionally, FF Global has established a similar consulting arrangement with AIXC, a cryptocurrency holding company managed by Wang, further entwining the financial interests of Jia and his associates. The influence of Jia and FF Global over Faraday Future is so pronounced that the company has flagged it as a risk factor in its filings. The company warned that Jia and FF Global's control could potentially conflict with its business strategies and financial goals. Following a tumultuous period that included Jia being sidelined from leadership in early 2022 due to concerns over financial mismanagement, he was reinstated as the sole CEO last year. In the interim, FF Global attempted to influence board composition, leading to severe tensions and threats against board members, resulting in several resignations. Additionally, Faraday Future reported a previous payment of $700,000 to a loan company associated with Jia and indicated that it owes $8.5 million to Leshi Information Technology Co. Ltd., a firm tied to his prior venture, LeEco, for advertising services. This ongoing connection raises further questions about corporate governance and the financial integrity of the struggling EV manufacturer.